Demonetisation to boost m-commerce sector in India: Report

M-commerce accounts for nearly 60% of online sales in the country, on the back of 30-50% growth in online transactions in the tier II and III citiesET Bureau | Updated: December 02, 2016, 09:07 IST

The Centre's move of demonetisation will augur well for the m-commerce industry in the country and most of the retail commerce will shift to mobile in the near future, says a report.

"The demonetisation move was exactly the fillip the fledgling m-commerce ecosystem in India was looking for," according to a CII Grant Thornton report.

M-commerce accounts for nearly 60% of online sales in the country, on the back of 30-50% growth in online transactions in the tier II and III cities. "Smartphone usage has grown at an explosive pace in recent past. We expect it to grow even faster with demonetisation and entry of new service providers such as Reliance Jio," the report said.

The growth in m-commerce has been fuelled by the availability of affordable smartphones and mobile data plans. India currently has 292 million smartphone users, and more than 45% of all mobile phones shipped in Indian market were smartphones in the first quarter of 2016.﻿﻿